LONDON, March 6, 2026, 09:19 GMT
Lloyds Banking Group plc has emerged as the frontrunner in the auction for Aegon’s UK business, Financial News reported on Wednesday, with Phoenix and Canada Life also in the running. The publication valued the deal at 1 billion to 1.5 billion pounds and said final bids were expected next month, with an announcement possible in April. 1
The timing matters. British lenders are pushing harder into savings, pensions and financial advice — businesses that earn fees rather than relying mainly on loan margins — as lower interest rates threaten to squeeze lending income. NatWest agreed last month to buy Evelyn Partners for 2.7 billion pounds, and RBC Capital Markets analyst Benjamin Toms called that deal “transformational”. 2
Lloyds has been moving the same way. In October it agreed to buy Schroders’ stake in their UK wealth joint venture, which was set to be rebranded Lloyds Wealth, and Chira Barua, head of its insurance, pensions and investments arm, said then that “growing wealth in the UK is core to our purpose.” 3
Aegon said in February it would give a summer update on its UK review, a process that could lead to a sale of parts of the British business, though not the asset-management arm. Earlier reporting said the UK operations serve about 3.7 million customers and hold roughly 220 billion pounds of assets, including a workplace pensions provider and two adviser platforms — systems that let financial advisers manage client money. 4
Lloyds also has room to keep returning cash while it hunts for growth. The bank said on Jan. 29 that 2025 pretax profit rose 12% to 6.7 billion pounds, beat analyst forecasts and triggered a 1.75 billion pound share buyback after it raised its profitability target for 2026. 5
Fresh filings this week showed Lloyds bought back 20.2 million shares on March 4 and 28.0 million on March 5, with both batches set to be cancelled. That points to a bank still leaning on capital returns even as deal speculation gathers around its wealth arm. 6
Chief Executive Charlie Nunn said with the annual results that “continued business momentum and strategic delivery” let Lloyds lift guidance. Gary Greenwood, an analyst at Shore Capital, said in January that political pressure on big lenders to support growth could mean lower pricing on loans, which helps explain the draw of steadier fee income. 5
The field is not thin. Bloomberg reported in February that Lloyds and Phoenix had submitted initial offers for Aegon’s UK arm, while Canada Life had also shown early interest. Financial News now says Lloyds is in pole position after the first round. 7
But a deal is far from settled. Financial News said no final decisions had been made, and Aegon has yet to spell out the final shape of any disposal. NatWest’s Evelyn deal also showed the valuation risk: Jefferies said that acquisition could trim earnings per share — a common measure of profit on each share — by 2% through 2028. 1
Lloyds is due to set out a strategy update on July 30. Before then, the next round of Aegon bids and Aegon’s promised summer update should show whether the latest report turns into a signed deal. 8
